Garda sources last night told The Irish Timesthat any material referred by the courts to the Garda National Bureau of Fraud Investigation would be carefully studied.

The sources said the banks who loaned the money to Michael Lynn would be required to make a formal statement of complaint to the Garda before any criminal investigation could begin.

Gardaí believe the banks will make formal complaints and will have prepared comprehensive documentation to support their concerns around Mr Lynn's activities. Any possible investigation would have to first determine if documentation used to secure loans was forged or was fraudulent in nature.